Richard Gregory Tilford

At ChapmanAlbin LLC, we strive to keep investors informed about the latest developments in securities enforcement. The Securities and Exchange Commission (SEC) has barred Richard Gregory Tilford, a former salesperson at Texas First Financial, LLC, for his involvement in a fraudulent scheme involving the sale of unregistered securities. The scheme caused significant financial harm to investors and underscores the risks associated with high-yield promissory notes.

Overview of the Case

The SEC’s administrative proceedings revealed that between 2015 and 2017, Tilford sold unregistered securities in the form of short-term, high-yield promissory notes. These notes were purportedly backed by real estate development projects led by North Forty Development, LLC, and its owner, Phillip Carter. However, the SEC found that the investments were not backed by hard real-estate assets as claimed. Instead, investor funds were misused, including to pay Carter’s personal tax debts.

Tilford’s fraudulent activities involved:

• Misleading Investors: Tilford made materially false statements about the safety and backing of the investments, leading investors to believe they were secure.
• Using Shell Companies: Intentionally misleading company names were used to confuse investors about the issuer of the promissory notes.
• Failing to Disclose Material Information: Tilford and his associates failed to inform investors about regulatory actions and criminal investigations tied to the scheme.
• Operating Without Proper Registration: Tilford engaged in securities transactions without being registered as a broker or dealer, violating federal securities laws.

Legal Consequences

Tilford’s actions have led to severe legal and regulatory consequences:

1. State Conviction: In 2021, Tilford was sentenced to 40 years in prison for violating Texas state securities laws.
2. SEC Sanctions: On September 29, 2022, a final judgment permanently enjoined Tilford from violating sections of the Securities Act of 1933 and the Securities Exchange Act of 1934.
3. Permanent Bar: The SEC has barred Tilford from associating with any broker, dealer, or investment adviser. He is also prohibited from participating in any penny stock offering.

Lessons for Investors

This case serves as a cautionary tale for investors to exercise due diligence and skepticism when evaluating investment opportunities. Promises of high yields often carry hidden risks, particularly when dealing with unregistered securities. Investors should:

• Verify the registration status of brokers and securities through the SEC’s database.
• Request clear and comprehensive disclosures about investments.
• Avoid investments with vague or overly complex structures.

How ChapmanAlbin Can Help

If you or someone you know invested in promissory notes sold by Richard Gregory Tilford, Texas First Financial, or North Forty Development and suffered losses, you may have legal options to recover your investments. ChapmanAlbin LLC specializes in securities fraud cases and can help you seek justice against bad actors.

Contact us today for a free consultation. Our experienced team is here to guide you through the recovery process and hold fraudulent parties accountable. For more investor alerts and updates on securities enforcement, visit our website.